8962 Form 2022 Printable, Fillable – The Health Insurance Marketplace Premium Tax Credit Calculator on Form 8962 is used to determine the amount of premium tax credit you are entitled to claim if you paid premiums for health insurance bought via the Health Insurance Marketplace. By claiming the premium tax credit, you may be able to lower your taxable income for the year. Completing 8962 Form will inform you of the amount of credit you are qualified to get or whether you owe the Internal Revenue Service (IRS) for receiving an excessive amount of advance premium tax credit (APTC).
Who Is Eligible to File Form 8962?
You must complete IRS 8962 Form only if you acquired health insurance via the Health Insurance Marketplace established under the Affordable Care Act. If you are insured by a group health insurance plan via your employer or if you acquired health insurance directly from an insurance carrier outside of the exchange, you do not need to complete this form.
Generally, you must complete and submit 8962 Form if you meet the following criteria:
- You paid your health insurance premiums out of pocket and now wish to claim the premium tax credit, or Advance premium tax credits were paid for you or a family member covered by your plan
- However, the IRS has determined that you are not required to file Form 8962 if you have excess advance premium tax credits for the tax year 2020.
If you purchased health insurance via the Marketplace and got a Form 1095-A, use it to complete Form 8962. This document, referred to as a Health Insurance Marketplace Statement, contains details about your plan, including the following:
- Premiums paid
- Premium tax credits claimed
- Plan beneficiaries
The Marketplace, not the IRS, issues Form 1095-A to you. If you do not get one, you should be able to see it online by entering into your Marketplace account.
You may get several Form 1095-A statements for the year if you changed Marketplace health insurance plans, added or deleted family members from your coverage, or have more than five family members enrolled in the same plan.
What Is the Purpose of Form 8962?
Advance premium credits are given directly to the provider of your health insurance plan, which reduces your monthly premium payments. Together with Form 1095-A, 8962 Form is used to reconcile the difference between the amount of advanced premium tax credit you got and the amount of premium tax credit you are qualified to receive, which is determined by your annual income.
This computation is significant because it establishes whether you owe money to the IRS. If the amount of advanced premium tax credit obtained is less than the amount of premium tax credit for which you are qualified, the difference is your responsibility. On the other side, if the amount of advanced premium tax credit obtained exceeds the amount of premium tax credit for which you are qualified, you owe money to the IRS. The amount you owe may affect the size of your total tax refund or require you to make a payment to the IRS.
For 2021 and 2022, the American Rescue Plan Act of 2021 eliminates the income limit on the advanced premium tax credit. Premiums for these plans are limited to 8.5 percent of the payer’s modified adjusted gross income on the high end (i.e. for those with adjusted gross incomes above 400 percent of the poverty level).
Additionally, Form 8962 is used to claim what is referred to as “net Premium Tax Credits.” These are available to qualified persons who choose to pay their insurance premiums out-of-pocket throughout the year and then claim the PTC at the end of the tax year rather than receiving an APTC.